Salzer Electronics Ltd. — Interim / Quarterly Report 2020

Aug 12, 2020

August 12, 2020 To

Exchange Plaza, C-1, Block G, BandraKurla Complex, Mumbai Bandra (E), — 400 051 Tel :+91 22 26598235/36, 26598346 Fax : +91 22 26598237/38

SCRIP CODE: 517059 Symbol: SALZERELEC

Dear Sir,

Sub : Outcome of the Board Meeting & Un-audited financial result

Ref : Our letter dated August 05, 2020

This is to inform in terms of Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulation 2015 ("SEBI LODR Regulations") and in furtherance to our letter referred above that the Board of Directors of the Company at their meeting held today (August 12, 2020) considered and approved standalone as well as consolidated Unaudited Financial Results of the Company for the first quarter ended 30/06/2020 together with the Limited Review report of M/s. JDS Associates, Statutory Auditor of the Company as required under Regulation 33 of SEBI LODR Regulations.

Enclosed herewith the approved standalone and consolidated Un-audited Financial Results for the first quarter ending 30/06/2020 along with the Limited Review Report of the statutory auditor for your records and_dissemination to the stakeholders. A copy of the same will be uploaded in the Company's website www.salzergroup.net .

Further, Pursuant to Regulation 47 of SEBI LODR Regulations, an extract of the aforesaid financial results in the manner prescribed under the SEBI Listing Regulations will be published in English and Tamil newspapers within time stipulated

The Meeting commenced at 11.30 a.m and closed at_! 4 Q p.m

May kindly be acknowledged the receipt.

Thanking you Yours faithfully For Salzer Electronics Limited ~~ § Baskarasubramanian . ——

Director (Corporate Affairs) & Company Secretary (DIN: 00003152 & FCS:4605)

SALZER ELECTRONICS LTD. CIN : L03210TZ1985PLC001535 Solzer

Standalone Statement of Un-Audited Financial Results for the First Quarter ended June 30,2020

	SALZER ELECTRONICS LTD. CIN: L03210TZ1985PLC001535			Company of the Company of the Company of the Company
	Standalone Statement of Un-Audited Financial Results for the First Quarter ended June 30,2020
					Rs. In Lacs
	S.No Particulars		Quarter ended		Year Ended
		6/30/2020	3/31/2020	6/30/2019	3/31/2020
		Un-Audited	Refer Note .9	Un-Audited	Audited
L	INCOME
a $\mathbf b$	Revenue From Operations Other Income	9567.87 27.03	13229.80 $-14.41$	16214.45 67.37	56694.56
	Total Income	9594.90	13215.39	16281.82	56783.31
Ш	EXPENSES
$\mathsf{a}$	Cost of materials consumed	6716.33	9530.28	13022.58	43019.54
$\mathbf b$	Changes in inventories of finished goods and work-in-progress	714.60	$-9.72$	$-371.33$	$-1038.47$
$\mathsf C$	Employee benefit expenses	427.53	665.59	632.57	2639.87
d	Finance Cost	481.73	543.80	532.74	2116.68
e	Depreciation and amortisation expense	394.09	367.70	347.11	1443.96
f	Other expenses	750.79	1613.99	1262.80	5554.68
	TOTAL EXPENSES PROFIT BEFORE EXCEPTIONAL ITEMS	9485.07	12711.64	15426.47	53736.26
III	AND TAX	109.83	503.75	855.35	3047.05
IV	Exceptional items PROFIT BEFORE TAX	0.00 109.83	0.00 503.75	0.00 855.35	3047.05
	Tax Expense	40.74	$-410.05$	275.31	408.39
V	PROFIT AFTER TAX	69.09	913.80	580.04	2638.66
VI	OTHER COMPREHENSIVE INCOME Items that will not be reclassified to
VII	profit or loss	34.71	$-58.66$	$-4.60$	$-91.83$
VIII	TOTAL COMPREHENSIVE INCOME FOR THE PERIOD	103.80	855.14	575.44	2546.83
IX	Paid up share capital - equity shares of	1598.27	1598.27	1598.27	1598.27
χ	Rs.10/- each Reserves and Surplus				29339.72
XI	EARNINGS PER SHARE
$\mathsf{a}$	Basic after exceptional items (In Rs.)	0.43	5.72	3.63
	Diluted after exceptional items (Rs.)	0.43	5.72	3.63
$\mathbf b$

Samichettipalayam, Coimbatore - 641 047, India. Phone : + + 91 422 4233600 Fax: + + 91 422 2692170 E-mail : salzer@salzergroup.com Website : www.salzergroup.com

Notes forming part of above STANDALONE results:

• 1. |The Company operates in only one segment viz., Electrical installation products.
• 1. The above standalone results were reviewed by the Audit Committee and approved by the Board of Directors in their meeting held on August 12, 2020,
• 1. The Statutory Auditors of the Company carried out a limited review of the Financial Results for the quarter ended June 30, 2020,
• 1. The spread of COVID-19 has adversely impacted global and domestic economic activities which bought everything to a standstill situation in several countries. There have been severe disruptions in businesses in India during the Lock down period. The Company has resumed production during the First week of May 2020 with permitted work force and scaled up it gradually in commensuration with market demand,
• 1. The situation is evolving around the uncertainties arising out Covid -19 Pandemic in view of continuous lock down in some parts of the Country, and its assessment is a continuous process. The Management has conducted the possible impact of known events arising from pandemic in the preparation of these financial statements and has analysed events post Balance Sheet date and believes that there will not be any material effect on the carrying values of the assets and liabilities of the Company on the reporting date and there is no change in its ability to continue as a Going Concern
• 1. In view of COVID-19 pandemic as well as restriction and consequential production loss in all Units, the Company has lost approximately Rs.55 —- 60 Crs of Revenue during the First quarter. The results for the quarter are therefore not comparable with those for the previous quarter
• 1. The above Standalone financial results of the Company have been prepared in accordance with Indian Accounting Standards (Ind AS) as prescribed under Section 133 of the Companies Act, 2013, read with relevant rules thereunder.
• 1. Figures of the last quarter of the financial year are the balancing figures between the audited figures in respect of the full financial year and published year to date figures upto the third quarter of the respective financial year.
• 1. Previous period's figures have been regrouped/ reclassified wherever necessary y to conform to this period's classifications

For SALZER ELECTRONICS LIMITED

Coimbatore - 641 047. —_ " S BASKARASUBRAMANIAN August 12, 2020 DIRECTOR CORPORATE AFFAIRS) & COMPANY SECRETARY (DIN:00003152)

J DS ASSOCIATES CHARTERED ACCOUNTANTS

STANDALONE LIMITED REVIEW REPORT

Independent Auditor's Review Report on the Quarterly Unaudited Standalone Financial Results of the Company Pursuant to the Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended

The Board of Directors Salzer Electronics Limited Coimbatore -641047

• 1. We have reviewed the accompanying statement of Unaudited Standalone Financial Results of Salzer Electronics Limited ("the Company") for the Quarter Ended June 30,2020 and year to date from April 01, 2020 to June 30, 2020 ("the Statement") attached herewith being submitted by the Company pursuant to the requirements of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended ("the Listing Regulations").
• 1. This statement is the responsibility of the Company's Management and has been approved by the Board of Directors and prepared in accordance with recognition and measurement principles laid down under Indian Accounting Standard 34 (Ind AS 34) "Interim Financial Reporting" prescribed under section 133 of the Companies Act, 2013 as amended. Our responsibility is to issue a report on these financial statements based on our review.
• 1. We conducted our review of the Statement in accordance with the Standard on Review Engagements (SRE) 2410 "Review of Interim Financial Information Performed by the Independent Auditor of the Entity", issued by the Institute of Chartered Accountants of India. This standard requires that we plan and perform the review to obtain moderate assurance as to whether the financial statements are free of material misstatement. A review is limited primarily to inquiries of company personnel and analytical procedures applied to financial data and thus provide less assurance than an audit. A review is substantially less in scope than an audit conducted in accordance with Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. We have not performed an audit and accordingly, we do not express an audit opinion.
• 1. Based on our review conducted as above, nothing has come to our attention that causes us to believe that the accompanying statement of Unaudited Financial Results prepared in accordance with the aforesaid Indian Accounting Standard (Ind AS) specified under Section 133 of the Companies Act, 2013 as amended read with relevant rules issued thereunder and other accounting principles generally accepted in India has not disclosed the information required to be disclosed in terms of the Listing Regulations, including the manner in which it is to be disclosed, or that it contains any material misstatement.
• 1. Attention is drawn to Note No.5 to the Statement, which describes the management's assessment of the impact of the outbreak of Covid-19 on the business operations of the Company. In view of the uncertain economic environment, a definitive assessment of the impact on the subsequent periods is highly dependent upon circumstances as they evolve. Our conclusion is not modified in respect of this matter.

Date : August 12,2020 Place : Coimbatore UDIN : 20028346AAAAFQ2358

T. SAMINATHAN BSc. F.C.A.,

254, Gandhiji Road ERODE - 638 001. Tel : 0424-2269599 E-mail : casaminathan@yahoo.co.in

B. JAYARAM / B.Com., F.C.A., D.I.S.A.,

1st Floor, Jewel Complex 642 (Old # 324) Raja Street COIMBATORE - 641 001. Tel : 0422 - 2304731, 2390882 E-mail : bjayaramca@airtelmail.in

K.P. LATHA M.Com., F.C.A.,D.1.S.A., 8/36, LRG Lay-out, 5th Street ABT Road, Karuvampalayam TIRUPUR - 641 604 Tel : 0421 - 4322843 E-mail : kplatha1995@sify.com

For JDS ASSOCIATES Chartered Accountants FRN :008735S 3

(B.JAYARAM) Partner Memb.No : 028346 J. FRANKLIN DAVID M.Com., F.C.A., 7-A, Sri Nagar, Behind Sungam Ramanathapuram COIMBATORE - 641 045 Tel : 0422 - 2312899

E-mail : jfranklin@yahoo.com

UNAUDITED CONSOLIDATED STATEMENT OF PROFIT AND LOSS ACCOUNT FOR THE QUARTER /PERIOID ENDED 30TH JUNE, 2020

SALZER ELECTRONICS LTD. —— bad — CIN : LO3210TZ1985PLC001535 UNAUDITED CONSOLIDATED STATEMENT OF PROFIT AND LOSS ACCOUNT FOR THE QUARTER /PERIOID ENDED 30TH JUNE, 2020 Year Ended Quarter Ended 31 March 2020 31 March 2020 30 June 2020 Particulars (Unaudited) Refer Note No.8 (Audited) INCOME Revenue From Operations 9,823.56 13,794.56 Other Income 31,93 17.93 TOTAL INCOME 9,855.49 13,812.49 EXPENSES Il_ Cost of materials consumed 6,804.42 9,825.26 Changes in inventories of finished goods and work-in-progress 776.24 (64.40) Employee benefit expenses 483.66 778.32 Finance Cost 482.21 544.24 Depreciation and amortisation expense 404.15 378.34 Other expenses 811.21 1,799.56 TOTAL EXPENSES 9,761.89 13,261.32 PROFIT BEFORE EXCEPTIONAL ITEMS AND Ill TAX 93.60 551.17 Exceptional items provision for inventory and receivables Covid @ Kaycee 19.46 _ Prior Period Expenses 4.38 = PROFIT BEFORE TAX 89.22 531.71 IV_ Tax Expense 40.74 (404.12) V_ PROFIT AFTER TAX 48.48 935.83 Attributable to : Owners of the Company 49.83 924.97 Non-controlling Interest 10.86 (1.35) VI OTHER COMPREHENSIVE INCOME Items that will not be reclassified to profit or 33.21 (64.99) . loss TOTAL COMPREHENSIVE INCOME FOR THE PERIOD 81.69 870.84
	58,435.34
	128.82 58,564.16
	43,200.27
	(430.82)
	2,984.54 2,122.14
	1,475.51
	6,003.27
	55,354.91
	3,209.25
	19.46
	a
	3,189.79
	448.46
	2,741.33
	2711.33
	29.99
	(102.26)
Attributable to : Owners of the Company 83.41 861.57	2,639.06 2611.64
Non-controlling Interest (1.73) 9.27	27.42
Share Capital (Equity shares of Rs.10/- each) 1598.27 1598.27	1598.27
Reserves and Surplus (Annualized)	29405.44
EARNINGS PER SHARE
- Basic after exceptional items (in Rs.) 5.79 - Diluted after exceptional items (in Rs.) 5.79	16.96 16.96

' LF} vi & Samichettipalayam, Coimbatore - 641-047, India. Ai Phone : + + 91 422 4233600 Fax.i.++91 422 2692170 Restaied ae E-mail : salzer@salzergroup.com Website : www.salzergroup.com

Notes forming part of above CONSOLIDATED results:

• 1. The Parent and Subsidiary operate in only one segment viz., Electrical installation products.
• 1. The above consolidated standalone results were reviewed by the Audit Committee and approved by the Board of Directors in their meeting held on August 12, 2020,
• 1. | The Statutory Auditors of the Company carried out a limited review of consolidated Financial Results for the quarter ended June 30, 2020,
• 1. The spread of COVID-19 has adversely impacted global and domestic economic activities which made standstill in several countries. There have been severe disruptions in businesses in India during the Lock down period. The both parent and subsidiary have resumed production during the First week of May 2020 with permitted work force and scaled up it gradually in commensuration with Market Demand,
• 1. The situation is evolving around the uncertainties arising out Covid -19 Pandemic in view of continuous lock down in the Country and its assessment is a continuous process. The Management of parent and subsidiary have individually conducted the possible impact of known events arising from pandemic in the preparation of these financial statements and analysed events post Balance Sheet date and believes that there will not be any material effect on the carrying values of the assets and liabilities of the Company on the reporting date and there is no change in its ability to continue as a Going Concern
• 1. Parent and subsidiary had combined revenue loss of around Rs. 57 to 62 Crs during the First quarter in view of Pandemic led lockdown as well as restriction and consequential production loss in all Units across the Company.
• 1. The above Consolidated financial results of the Company have been prepared in accordance with Indian Accounting Standards (Ind AS) as prescribed under Section 133 of the ~ Companies Act, 2013, read with relevant rules thereunder.
  2. 1. Comparable figures for the first quarter of last year have not been furnished in view of the fact that Kaycee Industries Limited has become subsidiary to Salzer Electronics Limited within the meaning of Section 2(87) of the Companies Act 2013 effective July 2019 i.e from Q2FY20
  3. 1. Figures of the last quarter of the financial year are the balancing figures between the audited figures in respect of the full financial year and published year to date figures upto the third quarter of the respective financial year.
  4. 1. Previous period's figures have been regrouped/ reclassified wherever necessary to conform to this period's classifications

For SALZER ELECTRONICS LIMITED =u

Coimbatore - 641 047. S BASKARASUBRAMANIAN August 12, 2020 DIRECTOR CORPORATE AFFAIRS) & COMPANY SECRETARY (DIN:00003152)

J DS ASSOCIATES CHARTERED ACCOUNTANTS

//CONSOLIDATED LIMITED REVIEW REPORT//

Independent Auditor's Review Report on the Consolidated Quarterly Unaudited Financial Results of the Company Pursuant to the Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended

The Board of Directors Salzer Electronics Limited Coimbatore -641047

• 1. We have reviewed the accompanying statement of Unaudited Consolidated Financial Results of Salzer Electronics Limited ("the Parent") and its subsidiary (the Parent and its subsidiaries together referred to as "the Group"), for the quarter ended June 30,2020 and for the period from April 01, 2020 to June 30, 2020 ("the Statement) attached herewith being submitted by the Parent pursuant to the requirements of Regulation 33 of the SEB) (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended ("the Listing Regulations").
• 1. This Statement, which is the responsibility of the Parent's Management and approved by the Parent's Board of Directors, has been prepared in accordance with the recognition and measurement principles laid down in Indian Accounting Standard 34 "Interim Financial Reporting" ("Ind AS 34"), prescribed under Section 133 of the Companies Act, 2013, and other accounting principles generally accepted in India. Our responsibility is to express a conclusion on the Statement based on our review.
• 1. We conducted our review of the Statement in accordance with the Standard on Review Engagements (SRE) 2410 "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the Institute of Chartered Accountants of India. A review of Interim Financial Information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

We also performed procedures in accordance with the Circular issued by the SEBI under Regulation 33 (8) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended, to the a ~~ extent applicable.

• 1. The Statement includes the results of the following entities:
• i) Parent Company Salzer Electronics Limited
• ii) Subsidiary Company
  • a. Kaycee Industries Limited
• 1. Based on our review conducted and procedures performed as stated in paragraph 3 above and based on the consideration of the review report of the other auditor referredd to in paragraph 7 below, nothing has come to our attention that causes us to believe that the accompanying Statement, prepared in accordance with the recognition and measurement principles laid down in the aforesaid Indian Accounting Standard and other accounting principles generally accepted in India, has not disclosed the information required to be disclosed in terms of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended, including the manner in which it is to be disclosed, or that it contains any material misstatement.
• 1. We draw your attention to Note 5 to the Statement, which describes the Parent Management's assessment of the Holding Company of the impact of the outbreak of Covid 19 on the business operations of the Company. In view of the uncertain economic environment, a definitive assessment of the impact on the subsequent periods is highly dependent upon circumstances as they evolve. Our conclusion is not modified in respect of this matter.

E-mail : casaminathan@yahoo.co.in E-mail : bjayaramca@airtelmail.in E-mail : kplatha1995@sify.com E-mail : jfranklin@yahoo.com

B. JAYARAM K.P. LATHA J. FRANKLIN DAVID T. SAMINATHAN B.Com., FCA, DLSA, M.Com., F.C.A., D.LSA., M.Com., F.C.A, BSc) FCA. 1st Floor, Jewel Complex 8/36, LRG Lay-out, 5th Street 7-A, Sri Nagar, Behind Sungam 254, Gandhiji Road 642 (Old # 324) Raja Street ABT Road, Karuvampalayam Ramanathapuram ERODE - 638 001. COIMBATORE - 641 001. TIRUPUR - 641 604 COIMBATORE - 641 045 Tel : 0424-2269599 Tel : 0422 - 2304731, 2390882 Tel : 0424 - 4322843 Tel : 0422 - 2312899

J DS ASSOCIATES CHARTERED ACCOUNTANTS

The consolidated Unaudited Financial Results includes the interim financial results of one subsidiary which have not been reviewed/audited by us, whose interim financial results reflect total revenue of Rs.275.82 lakhs, total net loss after tax of Rs. 20.61 Lakhs and total comprehensive income of Rs.(-)22.11 lakhs for the quarter ended 30.06.2020 as considered in the consolidated unaudited interim financial results, These interim financial results/ financial information have been reviewed by other auditor who carried out their review in accordance with SRE 2410, Review of Interim Financial Information performed by the Independent Auditor of the entity and their reports vide which they have issued an unmodified conclusion, have been furnished to us by the Parent's Management and our conclusion on the Statement, in so far as it relates to the affairs of the subsidiary is based solely on the reports of the other auditor and the procedures performed by us as stated in paragraph 3 above.

Our conclusion on the Statement is not modified in respect of the above matter.

Place : Coimbatore UDIN : 20028346AAAAFP8994

For JDS ASSOCIATES Chartered Accountants Date : August 12, 2020 FRN :008735S _ (B.JAYARAM) Partner —T Memb.No : 028346

T. SAMINATHAN BSc, FC.A.,

254, Gandhiji Road ERODE - 638 001. Tel : 0424-2269599 E-mail : casaminathan@yahoo.co.in

B. JAYARAM B.Com., F.C.A., D.I.S.A.,

1st Floor, Jewel Complex 642 (Old # 324) Raja Street COIMBATORE - 641 001. Tel : 0422 - 2304731, 2390882 E-mail : biayaramca@airtelmail.in

K.P. LATHA M.Com., F.C.A., D..S.A,, 8/36, LRG Lay-out, 5th Street ABT Road, Karuvampalayam TIRUPUR - 641 604 Tel : 0421 - 4322843 E-mail : kplatha1995@sify.com

J. FRANKLIN DAVID

M.Com., F.C.A., 7A, Sri Nagar, Behind Sungam Ramanathapuram COIMBATORE - 641 045 Tel : 0422 - 2312899 E-mail : jfranklin@yahoo.com